New India Assurance shares fall over 9 pc in debut trade

Mindy Sparks
November 13, 2017

The Rs 9,600 crore mega issue, which was sold in Rs 770-790 price band from November 1 to November 3, was subscribed 1.19 times.

The overall market sentiment was also weak with the benchmark Sensex declining 281 points, or 0.84%, to close at 33,033.56.

Mumbai: State-run New India Assurance Co Ltd's shares fell as much as 10 per cent on their trading debut on Monday, following an initial public offering (IPO) that saw the government and company raise a combined Rs 9,600 crore ($1.47 billion). During the day, the stock touched a high ₹749 and a low of ₹717.75. On the BSE, 4.3 lakh shares were traded on the counter. But high valuations, especially in some recent big IPOs from insurers, have dampened post-listing share price gains.


The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 2.34 times, non-institutional investors 12% and retail investors 11%, according to data available with the NSE.

The New India Assurance Company, a century old public sector general insurance company, is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of and for FY2017.

Other reports by Iphone Fresh

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